Rate hike may be minimal, says study

The Bank of Canada is hinting at an interest rate increase by late 2015, but some industry experts think it could happen as early as May.

But according to the Re/Max 2015 Housing Market Outlook Report, the “rates will continue to be near historic lows.”

The most probable scenario Re/Max predicts is a spike in purchases as buyers will want to secure mortgage approval before any price jump comes.

“When interest rates start to go up, everybody says ‘the world is going to end’ but the market is really going to pick up when that happens because of what I call FOMO: Fear of Missing Out,” says Don R. Campbell, a real-estate investor, researcher, and educator and author of Real Estate Investing in Canada, among other books. “It happens every time that a change occurs for short time, about four to six months.”

Are you looking to invest in property? If you like, we can get one of our mortgage experts to tell you exactly how much you can afford to borrow, which is the best mortgage for you or how much they could save you right now if you have an existing mortgage. Click here to get help choosing the best mortgage rate